Prices increase due to limited winter stock – animals through saleyards generally in good condition considering the tough autumn. 

Once again, to those PGG Wrightson clients on the East Coast of the North Island who bore the brunt of yet another heavy weather event in late June, our thoughts and support are with you.

After several months of disappointing prices, lamb and beef schedules are having a more positive impact on the recent livestock market, with demand in both the North and the South Island lifting week on week. Minimal stock numbers are a factor in these winter prices increases.

Although this upside is particularly welcome with sheep, it is not yet sufficient to turn into farm gate profit, and although a swing in the right direction, the mid-term outlook remains under scrutiny.

A combination of moisture and slightly warmer soil temperatures resulted in improved North Island pasture growth in June. Coupled with processor shortfall these conditions drove increased demand at saleyards for both sheep and cattle. Those with forward stock are able to take advantage of the more favourable processor schedules. Once the wider North Island received a solid dump of moisture and the temperature dropped in the first days of July, continuing erratic weather suggests this trend may be challenged.

In the South Island demand for prime cattle is helping elevate prices. In early July a Temuka ewe fair offered 14,000 in-lamb ewes to a large gallery of buyers, coming from as far afield as Ranfurly, North Canterbury and Gore. Though selective, purchasers accounted for all stock offered, including at prices between $110 and $140 for the most sought after ewes, therefore meeting the realistic expectations of most vendors and agents. Overall Ewes being offered for sale were in good condition, considering the tough autumn. Due to the lack of feed around the South Island, farmers are evidently choosing the ewes they want, in numbers they can be sure they will be able to feed.